Question: Given the following information, what is the expected return on a portfolio which is invested 40 percent in stock A and 60 percent in stock

Given the following information, what is the expected return on a

Given the following information, what is the expected return on a portfolio which is invested 40 percent in stock A and 60 percent in stock B? Probability of Return if state occurs State of economy state of Stock A Stock B economy Boom 60% 25% 15% Normal 30% 10% 8% Recession 10% -20% -4% O 11.00% O 12.00% 0 13.00% 0 13.50% O 16.00%

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